Investors prefer Public Sector Undertakings (PSUs) in India due to their stability and government backing, which reduce default risks. PSUs offer a blend of security, regular income, and potential for growth, making them appealing to investors seeking stable returns and lower risk.
Public Sector Undertakings (PSU) or Central Public Sector Enterprises (CPSE) in India are government-owned enterprises in which 51 percent or more share capital is held by the Government of India or state/central governments.
Net profit margin acts as a profitability indicator that indicates how good the company’s pricing strategy is, how effectively the organization can control expenses, and how efficiently it uses the resources of the company to produce goods or services.
Listed Below are some of the Public Sector Undertakings(PSUs) that have reported Net Profit Margins of upto 45% in FY24.
NHPC
NHPC Limited is a Miniratna central public sector enterprise, it is primarily involved in the generation of power through hydropower stations and the sale of bulk power to various power utilities. Its other business includes providing project management, construction contracts, consultancy assignment services, and many more.
With a market capitalization of Rs. 1,03,915 Crores, the shares of NHPC Limited were trading at Rs. 103.45 per equity share, up 6.27 percent from its previous day’s close price of Rs. 97.35.
NHPC Limited has delivered a return of 131 percent in a year and in FY24 it reported Net Profit Margins of 42 percent.
Its Revenue from Operations declined by 6.93 percent from Rs. 2,028.77 Crores in Q4FY23 to Rs. 1,888.14 Crores in Q4FY24, accompanied by profits of Rs. 719.18 Crores to Rs. 610.93 Crores.
SJVN
SJVN Limited is a Miniratna central public sector enterprise, engaged in the business of generation, transmission, and consultancy of electricity and renewable energy sources like hydro energy, wind energy, and solar energy.
With a market capitalization of Rs. 52,030 Crores, the shares of SJVN Limited were trading at Rs. 132.90 per equity share, up 5.35 percent from its previous day’s close price of Rs. 126.30.
SJVN Limited has delivered a return of 268 percent in a year and in FY24 it reported Net Profit Margins of 35.32 percent.
Its Revenue from Operations declined by 4.14 percent from Rs. 503.77 Crores in Q4FY23 to Rs. 482.91 Crores in Q4FY24, accompanied by profits of Rs. 17.21 Crores to Rs. 61.08 Crores.
Power Grid Corporation of India
Power Grid Corporation of India Limited is a Maharatna power transmission company engaged in planning, implementation, operation, and maintenance of Inter-State Transmission Systems (ISTS), telecom and consultancy services, and many more.
With a market capitalization of Rs. 2,84,086 Crores, the shares of Power Grid Corporation of India Limited were trading at Rs. 306.10 per equity share, up 2.46 percent from its previous day’s close price of Rs. 298.75.
Power Grid Corporation of India Limited has delivered a return of 72 percent in a year and in FY24 it reported Net Profit Margins of 33.97 percent.
Its Revenue from Operations declined by 2.33 percent from Rs. 12,263 Crores in Q4FY23 to Rs. 11,978 Crores in Q4FY24, accompanied by profits of Rs. 4,322.87 Crores to Rs. 4,166.33 Crores.
REC
REC Limited is a ‘Maharatna’ company under the administrative control of the Ministry of Power, GOI, it provides long-term loans and other financing products to the State, Centre, and Private Companies for financing projects in the complete power sector value chain from generation to distribution.
With a market capitalization of Rs. 1,29,883 Crores, the shares of REC Limited were trading at Rs. 494.25 per equity share, up 7.57 percent from its previous day’s close price of Rs. 459.45.
REC Limited has delivered a return of 236 percent in a year and in FY24 it reported Net Profit Margins of 29.77 percent.
Its Total Income grew by 23.76 percent from Rs. 10,243 Crores in Q4FY23 to Rs. 12,677 Crores in Q4FY24, accompanied by profits of Rs. 3,065.37 Crores to Rs. 4,079.09 Crores.
Power Finance Corporation
Power Finance Corporation Limited is a Non-Deposit NBFC, engaged in providing financial assistance to the power sector, fund-based products include project term loans, lease financing, corporate loans, line of credit, and many others.
With a market capitalization of Rs. 1,59,576 Crores, the shares of Power Finance Corporation Limited were trading at Rs. 478.20 per equity share, up 6.98 percent from its previous day’s close price of Rs. 447.
Power Finance Corporation Limited has delivered a return of 210 percent in a year and in FY24 it reported Net Profit Margins of 29 percent.
Its Total Income grew by 20.34 percent from Rs. 20,060 Crores in Q4FY23 to Rs. 24,141 Crores in Q4FY24, accompanied by profits of Rs. 6,128.63 Crores to Rs. 7,556.43 Crores.
Housing & Urban Development Corporation
Housing & Urban Development Corporation Limited is primarily engaged in the business of financing housing and urban development activities in the country.
With a market capitalization of Rs. 50,748 Crores, the shares of Housing & Urban Development Corporation Limited were trading at Rs. 252.50 per equity share, up 8.44 percent from its previous day’s close price of Rs. 232.85.
Housing & Urban Development Corporation Limited has delivered a return of 315 percent in a year and in FY24 it reported Net Profit Margins of 27 percent.
Its Total Income grew by 11.49 percent from Rs. 1,852.38 Crores in Q4FY23 to Rs. 2,065.22 Crores in Q4FY24, accompanied by profits of Rs. 639.19 Crores to Rs. 700.16 Crores.
Written by: Bharath K.S
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